BoE Money and Credit figures released today show household deposits with banks and building societies increased by £4.7bn in August, up from £3.8bn in July, with an additional £4.4bn deposited into ISAs, £0.3bn into non-interest-bearing accounts and £0.3bn into interest-bearing time accounts.
Alice Haine, head of personal finance, Hargreaves Lansdown:
“Savers are racing to beat April’s Cash ISA cut, making the most of the £20,000 allowance while it’s still available. With frozen tax thresholds and a static Personal Savings Allowance already pulling more people into paying tax on their interest, it’s no surprise people are sheltering as much cash as they can now.
Next year’s reforms come with a raft of changes, including a reduced Cash ISA allowance for those aged 18 to 64, higher tax rates on savings interest held outside ISAs and pensions, and a 22% charge on interest earned on cash within a Stocks & Shares ISA.
For those building an emergency fund or setting aside money for short-term goals, there’s still time to make the most of the current £20,000 Cash ISA allowance before rules change. But remember that cash isn’t a long-term plan. Money you won’t need for five years is more likely to work harder invested.
With savings rates moving higher once again, savers can also benefit from more competitive Cash ISA deals, with some of the best rates now back above the 5% mark. However, it’s worth looking beyond the headline rate, as these offers can include a temporary bonus that may expire after 12 months. Shopping around for the best deal, reading the small print and reviewing accounts regularly can help ensure your money keeps working as hard as possible over the long term.”
Notes to Editors
HL is the UK’s largest investment and savings platform for private investors and more than 2.2 million clients trust us with £205 billion (as of June 2026).
We help Britain build wealth, with confidence. Our promise is simple: to provide the best products, the best support and the best value. Founded in 1981, we’ve been helping people save and invest for a better financial future for more than four decades. We offer a lifelong, secure home for our clients’ investments and savings, combining great value with outstanding service, to make managing your money easier at every stage of life.
Our award-winning Savings & Resilience Barometer measures the nation’s financial resilience across our 5 to Thrive pillars, equipping people with the tools they need to strengthen their financial futures.
Saving and investing is for the whole family, and to support intergenerational wealth transfer, we’ve removed all platform charges and share dealing fees on our Junior ISA, meaning kids go free, and we’ve reduced the platform fee on our Lifetime ISA to 0.25%, supporting those savings for their first home or for retirement.
Regular saving into all funds, FTSE 350 shares, and selected investment trusts and ETFs is free.
Our clients also have access to the most comprehensive pension and retirement solution, including SIPP accounts, SIPP Income Drawdown, UFPLS payments and annuities, as well as over 14,000 investment options across funds, shares, ETFs, investment trusts, bonds and gilts.
HL Active Savings is the UK's largest retail cash savings platform that lets savers easily make more of their money and the HL Cash ISA allows savers to manage their Cash ISA portfolio across multiple banks, all within one account.